When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Tuesday, June 11, 2013

Virtual currency con games

I came across the following in my daily reading:

Financial Crimes Enforcement Network Issues Guidance on Virtual Currency | Pillsbury Social Media, Entertainment & Technology Team - JDSupra: "FinCEN recently issued interpretive guidance to clarify that it views certain activities involving convertible virtual currencies as money transmission services under the Bank Secrecy Act and FinCEN regulations. If your business involves creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies, you may be subject to FinCEN's registration, reporting, and recordkeeping requirements." 

'Virtual' Currencies Draw State Scrutiny - WSJ.com: "The new scrutiny comes at the same time federal regulators are attempting to rein in illegal activities made easier by virtual currencies. The Financial Crimes Enforcement Network, or FinCEN, a unit of the Treasury Department, in March issued guidelines that said virtual currency exchanges are subject to the same comprehensive anti-money-laundering requirements as traditional money-transmission businesses such as Western Union Co. and encouraged them to register with the agency."

My opinion--virtual currency is crap! I don't care if it is "bitcoin" or whatever. Don't waste your time (or money) with virtual currencies of any kind, type, etc. The US Dollar is still king and will be for the foreseeable future--and I would be the first to concede that Washington hasn't been a good steward of the Dollar, particularly during the George W. Bush and Barack H. Obama administrations--but, nonetheless, globally, it is the currency of choice. So if you live in the US, hold US dollars and forget the rest. If you live elsewhere, hold your local currency and some US dollars "just in case." And if you're paranoid? Then add to your local currency/US dollars stash, some gold (just enough you could carry in your pocket), and if you must "diversify" into other currencies--I wouldn't hold anything other than Canadian dollars, Australian dollars, and British pounds. That's it.


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects